10.REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMS 10.REDESIGNING THE ORGANIZATION WITH INFORMATION SYSTEMS

INFORMATION SYSTEMS PLAN DIRECTION OF SYSTEM DEVELOPMENT: RATIONALERATIONALE CURRENT SITUATIONCURRENT SITUATION MANAGEMENT STRATEGYMANAGEMENT STRATEGY IMPLEMENTATION PLANIMPLEMENTATION PLAN BUDGETBUDGET* 10.2

ENTERPRISE ANALYSIS ORGANIZATION-WIDE INFORMATION NEEDS IN TERMS OF: ORGANIZATION-WIDE INFORMATION NEEDS IN TERMS OF: ORGANIZATIONAL UNITSORGANIZATIONAL UNITS FUNCTIONSFUNCTIONS PROCESSESPROCESSES DATA ELEMENTSDATA ELEMENTS HELPS IDENTIFY KEY ENTITIES & ATTRIBUTES IN ORGANIZATION’S DATA HELPS IDENTIFY KEY ENTITIES & ATTRIBUTES IN ORGANIZATION’S DATA* 10.3

CRITICAL SUCCESS FACTORS SMALL NUMBER, EASILY IDENTIFIABLE OPERATIONAL GOALS SHAPED BY INDUSTRY, MANAGER, ENVIRONMENT BELIEVED TO ASSURE FIRM’S SUCCESS. USED TO DETERMINE ORGANIZATION’S INFORMATION REQUIREMENTS * 10.4

EXAMPLE EXAMPLE GOALS GOALS CRITICAL SUCCESS FACTOR PROFIT CONCERN PROFIT CONCERN EARNINGS/SHARE EARNINGS/SHARE AUTOMOBILE INDUSTRY AUTOMOBILE INDUSTRY RETURN ON INVESTMENT STYLING STYLING MARKET SHARE MARKET SHARE QUALITY DEALER SYSTEM QUALITY DEALER SYSTEM NEW PRODUCT NEW PRODUCT COST CONTROL COST CONTROL ENERGY STANDARDS ENERGY STANDARDS NONPROFIT NONPROFIT EXCELLENT HEALTH CARE EXCELLENT HEALTH CARE REGIONAL INTEGRATION OF HOSPITALS REGIONAL INTEGRATION OF HOSPITALS MEETING GOVERNMENT REGULATIONS MEETING GOVERNMENT REGULATIONS EFFICIENT USE OF RESOURCES EFFICIENT USE OF RESOURCES FUTURE HEALTH NEEDS FUTURE HEALTH NEEDS IMPROVED MONITORING OF REGULATIONS IMPROVED MONITORING OF REGULATIONS Source: Rockart “Chief Executives Define Their Own Data Needs” (1979) CRITICAL SUCCESS FACTORS & GOALS 10.5

USING CSFs TO DEVELOP SYSTEMS COLLECT MANAGERS’ CSFsCOLLECT MANAGERS’ CSFs AGGREGATE, ANALYZE INDIVIDUALS’ CSFsAGGREGATE, ANALYZE INDIVIDUALS’ CSFs DEVELOP AGREEMENT ON COMPANY CSFsDEVELOP AGREEMENT ON COMPANY CSFs DEFINE COMPANY CSFsDEFINE COMPANY CSFs USE CSFs TO DEVELOP INFORMATION SYSTEM PRIORITIESUSE CSFs TO DEVELOP INFORMATION SYSTEM PRIORITIES DEFINE DSS & DATABASESDEFINE DSS & DATABASES* 10.6

SPECTRUM OF ORGANIZATIONAL CHANGE AUTOMATION: Using Technology to Perform Tasks Efficiently / EffectivelyAUTOMATION: Using Technology to Perform Tasks Efficiently / Effectively RATIONALIZATION OF PROCEDURES: Streamline SOPs; Eliminate BottlenecksRATIONALIZATION OF PROCEDURES: Streamline SOPs; Eliminate Bottlenecks BUSINESS REENGINEERING: Radical Redesign of Processes to Improve Cost, Quality, Service; Maximize Benefits of TechnologyBUSINESS REENGINEERING: Radical Redesign of Processes to Improve Cost, Quality, Service; Maximize Benefits of Technology PARADIGM SHIFTPARADIGM SHIFT* 10.7

PARADIGM SHIFT PARADIGM IS A COMPLETE MENTAL MODEL OF HOW A COMPLEX SYSTEM FUNCTIONSPARADIGM IS A COMPLETE MENTAL MODEL OF HOW A COMPLEX SYSTEM FUNCTIONS A PARADIGM SHIFT INVOLVES RETHINKING THE NATURE OF THE BUSINESS, THE ORGANIZATION; A COMPLETE RECONCEPTION OF HOW THE SYSTEM SHOULD FUNCTIONA PARADIGM SHIFT INVOLVES RETHINKING THE NATURE OF THE BUSINESS, THE ORGANIZATION; A COMPLETE RECONCEPTION OF HOW THE SYSTEM SHOULD FUNCTION* 10.8

RISKS & REWARDS RISK RETURN Low LowHigh High 10.9

BUSINESS REENGINEERING WORKFLOW MANAGEMENT: Streamlining Procedures to Move Documents Easily, Efficiently from One Location to AnotherWORKFLOW MANAGEMENT: Streamlining Procedures to Move Documents Easily, Efficiently from One Location to Another MEASURE EXISTING PROCESSES AS BASELINEMEASURE EXISTING PROCESSES AS BASELINE USE INFORMATION TECHNOLOGY TO CREATE NEW DESIGN OPTIONSUSE INFORMATION TECHNOLOGY TO CREATE NEW DESIGN OPTIONS* 10.10

SYSTEM DEVELOPMENT PROCESS SYSTEMS ANALYSISSYSTEMS ANALYSIS SYSTEM DESIGNSYSTEM DESIGN PROGRAMMINGPROGRAMMING TESTINGTESTING CONVERSIONCONVERSION PRODUCTION & MAINTENANCEPRODUCTION & MAINTENANCE*

SYSTEMS ANALYSIS ANALYSIS OF PROBLEM TO BE SOLVED WITH AN INFORMATION SYSTEM ANALYSIS OF PROBLEM TO BE SOLVED WITH AN INFORMATION SYSTEM FEASIBILITY STUDY: CAN PROBLEM BE SOLVED WITHIN CONSTRAINTS? FEASIBILITY STUDY: CAN PROBLEM BE SOLVED WITHIN CONSTRAINTS?*

FEASIBILITY TECHNICAL: Assess Hardware, Software, Technical ResourcesTECHNICAL: Assess Hardware, Software, Technical Resources ECONOMIC: Will Benefits Outweigh CostsECONOMIC: Will Benefits Outweigh Costs OPERATIONAL: Is Solution Desirable Within Existing Conditions?OPERATIONAL: Is Solution Desirable Within Existing Conditions? INFORMATION REQUIREMENTS: Detailed Statement of New System NeedsINFORMATION REQUIREMENTS: Detailed Statement of New System Needs*

SYSTEM DESIGN DETAILS HOW SYSTEM WILL MEET NEEDS: DETAILS HOW SYSTEM WILL MEET NEEDS: LOGICAL DESIGN: Components, Data as Needed by ApplicationsLOGICAL DESIGN: Components, Data as Needed by Applications PHYSICAL DESIGN: Physical Location of Components and DataPHYSICAL DESIGN: Physical Location of Components and Data END USERS: Needs Drive Design; Must Have Input, Understand How Solution Meets Their Needs END USERS: Needs Drive Design; Must Have Input, Understand How Solution Meets Their Needs OUTPUTOUTPUT –MEDIUM –CONTENT –TIMING *

ROLE OF END USERS USERS DRIVE SYSTEMS EFFORTUSERS DRIVE SYSTEMS EFFORT MUST HAVE SUFFICIENT CONTROL TO ENSURE SYSTEM REFLECTS BUSINESS PRIORITIES, NEEDSMUST HAVE SUFFICIENT CONTROL TO ENSURE SYSTEM REFLECTS BUSINESS PRIORITIES, NEEDS FUNCTIONAL USERS DRIVE SYSTEM NEEDSFUNCTIONAL USERS DRIVE SYSTEM NEEDS

COMPLETING SYSTEM DEVELOPMENT PROCESS PROGRAMMING: Translating needs to Program CodePROGRAMMING: Translating needs to Program Code TESTING: Does System Produce Desired Results?TESTING: Does System Produce Desired Results?*

TESTING UNIT TESTING: Tests Each Unit SeparatelyUNIT TESTING: Tests Each Unit Separately SYSTEM TESTING: Do Modules Function as planned?SYSTEM TESTING: Do Modules Function as planned? ACCEPTANCE TESTING: Final CertificationACCEPTANCE TESTING: Final Certification TEST PLAN: Preparations for Tests to be PerformedTEST PLAN: Preparations for Tests to be Performed*

CONVERSION PARALLEL: Old & New Run Same Problems. Give Same Results?PARALLEL: Old & New Run Same Problems. Give Same Results? DIRECT: Risky Conversion to New SystemDIRECT: Risky Conversion to New System PILOT: Introduce Into One Area. Does it Work? Yes: Introduce into Other AreaPILOT: Introduce Into One Area. Does it Work? Yes: Introduce into Other Area PHASED: Introduce in StagesPHASED: Introduce in Stages CONVERSION PLAN: Schedule for ConversionCONVERSION PLAN: Schedule for Conversion DOCUMENTATION: Description of How System WorksDOCUMENTATION: Description of How System Works*

PRODUCTION & MAINTENANCE PRODUCTION: Constant Review by Users & Operators. Does it Meet Goals?PRODUCTION: Constant Review by Users & Operators. Does it Meet Goals? MAINTENANCE: Upkeep; Update; Corrections Over TimeMAINTENANCE: Upkeep; Update; Corrections Over Time*

SYSTEMS DEVELOPMENT CORE ACTIVITY CORE ACTIVITY DESCRIPTION DESCRIPTION SYSTEMS ANALYSIS SYSTEMS ANALYSIS IDENTIFY PROBLEM(S) IDENTIFY PROBLEM(S) SPECIFY PROBLEM SPECIFY PROBLEM ESTABLISH INFORMATION REQUIREMENTS ESTABLISH INFORMATION REQUIREMENTS SYSTEMS DESIGN SYSTEMS DESIGN CREATE LOGICAL DESIGN SPECIFICATIONS CREATE LOGICAL DESIGN SPECIFICATIONS CREATE PHYSICAL DESIGN SPECIFICATIONS CREATE PHYSICAL DESIGN SPECIFICATIONS MANAGE TECHNICAL REALIZATION OF SYSTEM MANAGE TECHNICAL REALIZATION OF SYSTEM PROGRAMMING PROGRAMMING TRANSLATE DESIGN INTO CODE TRANSLATE DESIGN INTO CODE TESTING TESTING UNIT UNIT SYSTEMS SYSTEMS ACCEPTANCE ACCEPTANCE CONVERSION CONVERSION PLAN PLAN PREPARE DOCUMENTATION PREPARE DOCUMENTATION TRAIN USERS & TECHNICAL STAFF TRAIN USERS & TECHNICAL STAFF PRODUCTION & PRODUCTION &MAINTENANCE OPERATE OPERATE EVALUATE EVALUATE MODIFY MODIFY

IMPLEMENTING CHANGE ALL ACTIVITIES WORK TOWARD ADOPTING, MANAGING, ROUTINIZING INNOVATION ALL ACTIVITIES WORK TOWARD ADOPTING, MANAGING, ROUTINIZING INNOVATION CHANGE AGENT: Individual Acting as Catalyst to Insure Success in Adapting to New SystemCHANGE AGENT: Individual Acting as Catalyst to Insure Success in Adapting to New System USER-DESIGNER COMMUNICATIONS GAP : Differences in Backgrounds, Interests, Priorities that Impede Communications & Problem Solving Between End-users & SpecialistsUSER-DESIGNER COMMUNICATIONS GAP : Differences in Backgrounds, Interests, Priorities that Impede Communications & Problem Solving Between End-users & Specialists*

Factors Critical For Success User InvolvementUser Involvement Management SupportManagement Support Level of Complexity and RiskLevel of Complexity and Risk Management of Implementation ProcessManagement of Implementation Process

DESIGNING FOR THE ORGANIZATION JOB DESIGN STRATEGIC PEOPLE- TECHNOLOGY PLANNING WORK STANDARDS & PERFORMANCE MONITORING TRAINING & PILOTING ERGONOMICS: *HARDWARE * WORKSTATIONS *SOFTWARE * WORK ENVIRONMENT HEALTH & SAFETY HEALTH & SAFETY EMPLOYEE COMMUNICATIONS MECHANISMS LEGAL/REGULATORY COMPLIANCE EMPLOYEE PARTICIPATION

MANAGEMENT CHALLENGES MAJOR RISKS/UNCERTAINTIES IN SYSTEM DEVELOPMENTMAJOR RISKS/UNCERTAINTIES IN SYSTEM DEVELOPMENT DIFFICULT TO DETERMINE BENEFITSDIFFICULT TO DETERMINE BENEFITS MANAGING CHANGEMANAGING CHANGE*